NATIONAL SECURITY A VIF Publication

Instructions for authors

India's Need for Strategic Minerals

Ajey Lele

Lele, Ajey. " India's Need for Strategic Minerals " National Security, Viveka-nanda International Foundation Vol.II (2) (2019) ISSN 2581-9658 pp. 247-263. https://www.vifindia.org/sites/default/files/national-security-vol-2-issue-2-article-Alele

This article may be used for research, teaching and private study

purposes. Any substantial or systematic reproduction, re-

distribution, re-selling, loan or sub-licensing, systematic supply or

distribution in any form to anyone is expressly forbidden.

Views expressed are those of the author(s) and do not necessarily

reflect the views of the VIF.

The author certifies that the article/paper is original in content,

unpublished and it has not been submitted for publication/web

upload elsewhere and that the facts and figures quoted are duly

referenced, as needed, and are believed to be correct.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 247

Article

India's Need for Strategic Minerals

Ajey Lele

Abstract

Assured supply of critical and strategic minerals is vital for the defence and

security of India as well as its transition to a more advanced low fossil fuel based

industrial economy. The space industry, electronics, information technology and

communications, the energy sector, electric batteries, the nuclear industry among

others are all significantly dependent on various critical minerals and rare earths.

India is a mineral-rich country and availability of most minerals should not be an

issue. However, the real challenge is that of excavation, processing, research, and

investments. The strategic mineral sector in particular and the mining sector in

general is expected to face difficulties in meeting the growing demand in vital

sectors in the coming years. Import dependency for strategic minerals is one of the

most obvious challenges. Besides expanding prospecting and improved processing,

India also needs to significantly increase the research focus in all relevant areas of

technology and to undertake research on recycling of minerals and finding the

correct substitutes. The role of the private sector in mining and the minerals sector

also needs to increase.

S trategic materials are increasingly important to the development of a nation-state in

general and its security in particular. It is important to appreciate that states are

wary about making specific information public, with regard to their needs and plans for

strategic minerals for obvious reasons. This limits empirical assessment about the needs,

capabilities and limitations of a nation-state in this arena. This paper undertakes a broad-

based analysis of India's need for strategic minerals since no demand-supply-deficiency

assessment has been carried out, so for.

Group Captain (Retd.) Ajey Lele is Senior Fellow in the Institute for Defence Studies and Analyses and heads its Centre on Strategic Technologies.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 248

What are Strategic Minerals?

Mineralogy is perhaps the oldest branch of material sciences, and is also

considered as the oldest branch of geology. For several centuries, mineralogy dealt with

materials that appear in nature as minerals, and it still continues to provide motivation to

material chemists in the synthesis of new materials.1 There are various definitions of the

term mineral. Any mineral is a naturally-occurring inorganic substance (homogeneous

solid) with a definite and predictable chemical composition and physical properties.

Different minerals could be based on the nature and the arrangements of the atoms

made inside them.2 Minerals, in general, are obtained through mining and processed

further, based on requirement. Organic substances like coal, natural gas, and petroleum

could also be categorised as minerals, though many discussions (including this paper) on

this subject do not treat them as minerals.

Research on minerals has been ongoing for a number of years. Prof James

Dwight Dana from Yale University is widely recognised for his work on mineral

classifications. He presented the first organizational structure for minerals during 1837.

The first five editions of ‘A System of Mineralogy’, were published through 1837, 1844,

1850, 1854, and 1868, and were authored or revised by Prof Dana. Every new edition saw

an enormous increase in knowledge due to extensive research undertaken in this field.

The first edition described all 352 minerals known at that time. At present, the world is in

the know of about 4000 types. However, even today the basic classification presented by

Dana continuous to be valid. The Dana system divides minerals into eight basic classes,

namely: native elements, silicates, oxides, sulfides, sulfates, halides, carbonates,

phosphates, and mineraloids.3 Most of the new minerals found during 20th and 21st

century could be fixed into these basic classes.

Amongst different minerals some are special. They attain special status owing to

short-supply, controls, cost factor and utility for strategic industries. Also, there are

mineral-rich countries as well as mineral-deficient countries. However, mineral

excavation requires significant financial investments and technology proficiency. Hence,

there are some states which are mineral-rich but are unable to mine them. Relevance of a

particular mineral could vary from state to state based on needs and availability. There

are wide-ranging usages of various mineral resources. Essentially, they are the lifeline for

industrial setups, particularly for the construction industry and other associated

industries. Minerals have relevance for the communications and electronics industry too.

Their importance for the defence industry and other strategic industries like energy,

nuclear and space make their significance very distinctive.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 249

Generally, Strategic Minerals (also known as Critical Minerals) is a broad category

that identifies various minerals and elements; the bulk of which are minor metals.

Geography and availability of domestic supply normally defines the "critical” nature of

minerals for any particular region or a country.4 A nuanced distinction between the words

strategic and critical implies that critical materials have relevance for the overall interests

of the state, while strategic minerals are essentially those minerals which have relevance

for the defence/strategic architecture of the state.

Keeping military need as a key focus, strategic minerals (also sometimes termed

as strategic materials) generally could be defined as those:5

that are needed to meet the military, industrial and essential civilian

requirements of a state during a national emergency;

that are not found or produced in sufficient quantities to meet such needs of the

state

From the list of around 4000 minerals, it is challenging to exactly isolate strategic

minerals. Also, as mentioned above a mineral which is strategic for one state may not be

strategic for another. Still, in literature there are references made to some minerals which

could be broadly considered as strategic minerals universally. Some of these minerals are

mentioned below. No specific methodology has been followed for this identification,

which is broadly based on observation and factoring the mineral requirements of the

strategic industries.

Vital Strategic Minerals include Antimony, Molybdenum, Borates, Nickel,

Chromium, Cobalt, Silver, Copper, Titanium, Diamond, Tungsten, Germanium,

Vanadium, Lithium, Zinc and Rare earths.6

Minerals and Mining in India

The geology of India is diverse. Different parts of India contain rocks belonging to

different geologic periods and there are varied geological structures. Variety of mineral

deposits are found in the Indian subcontinent. In addition, India is a geographically unique

state. It has range of geographical features from mountain ranges, snow-capped

mountainous ridges, thick vegetated forests, rain forests and deserts, and a long

coastline. The difficult geography at times makes it tough to access some of the minerals

rich areas.

Owing to the exceptional stability of the Indian peninsula, its rocks have been

comparatively less mineralised. It is only in the very oldest rock structures, metallic ores

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 250

occur in valuable quantities. But their discovery is often difficult, as they are buried

underneath the protracted accumulation of weather material.i Sir T. H. Holland, a former

Director of the Geological Survey of India during the colonial period, published in 1908 a

very detailed sketch of the mineral resources of India providing detailed description

about various available minerals. In this publication he presented a categorisation of

mineral products in India. The categories identified are: Carbon and its Compounds,

Metalliferous Minerals and Metals, Minerals used in various Industries and Gem-stones.

The study stated that the mineral industry and mining activities in India went through

many ups and downs from the late 1800s to early 1900s.7 Around this period, the key

minerals in use were iron, lead, copper, tin, zinc and antimony.

Given the importance of minerals in the overall growth of the country, almost

immediately after independence, the Indian Bureau of Mines (IBM)8 was established

(during 1948) as a multi-disciplinary government organisation under the Department of

Mines, Ministry of Mines. The primary mission of the Indian Bureau of Mines is to

promote the scientific development of mineral resources in the country (both onshore

and offshore) other than coal, petroleum & natural gas, atomic minerals and minor

minerals.

Broadly, there are two categories of minerals: Major minerals and Minor

minerals. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act

1957) defines “Minor minerals” as the minerals like building stones, gravel, ordinary clay,

ordinary sand other than sand used for prescribed purposes, and any other mineral which

the Central Government may, by notification in the Official Gazette, declare to be a minor

mineral. Interestingly, there is no definition of major mineral in this act. The first schedule

appended in MMDR Act 1957 has three mineral categories under the head ‘Specific

Minerals’. These categories include Hydrocarbon Energy Minerals, Atomic Minerals and

Metallic and Non-Metallic Minerals. Normally, the category of Metallic and Non-Metallic

Minerals gets referred to as major minerals.9 Asbestos, Bauxite, Chrome ore, Copper ore,

Gold, Iron ore, Lead, Manganese ore, precious Stones and Zinc belong to this category.

Though minerals production in India increased considerably during 1960s, it was

also realised that India’s mineral deposits were less than the USA, erstwhile USSR,

Canada and South Africa. Mineral exploration is a continuous process and demand

significant technical expertise and financial investments. Owing to these reasons, during

the initial years after Independence, it was difficult for India to explore its vast area of

i. A review of Sir T. H. Holland, Sketch of the Mineral Resources of India, London and Calcutta, 1908, published in Nature April 8, 1909, No 2058, Vol 80, p. 163

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 251

mineral deposits. In addition, owing to technology limitations then, it was not possible to

undertake precise geological mapping.10

India is acknowledged as a nation well-endowed in natural mineral resources. It

ranks 4th amongst the mineral producer countries, behind China, United States and

Russia, on the basis of volume of production, as per the Report on Mineral Production by

International Organizing Committee for the World Mining Congress.11 Various mineral

deposits are found in India. The country produces around 87 to 89 minerals, including 4

fuel minerals, 10 metallic minerals, 49 non-metallic minerals, 3 atomic minerals and 22

minor minerals (including building and other materials).12 India’s domestic mining sector

contributes about 10% -11% to the industrial sector and about 2.2% - 2.5% to the

economy’s GDP13 --which is one of the lowest vis-à-vis some of the larger emerging

economies such as China (20 per cent), Australia (8 per cent) and Russia (14.7 per cent).14

This contribution has not shown much of a variation post-2011, and during some years it

has actually reduced to approximately around two per cent to the GDP.

The major portion of mining in India, almost 80% is that of coal and the rest 20%

constitutes of very many metals and raw materials such as gold, copper, iron, lead,

bauxite, zinc and uranium. India has a well-oiled network which undertake various tasks

associated with mining. India tops the world in respect to mica and mica splitting. The

country ranks third in the production of coal, barytes and chromite. India stands 4th in iron

ore production and 6th in bauxite and manganese. India is also among the top ten

countries in respect of aluminium production and stands at number ten.15 India’s mining

industry constitutes a large number of small operational mines. The average number of

mines which reports production [excluding minor minerals, petroleum (crude), natural

gas and atomic minerals] in India are about 2000.

As per the Annual Report 2017-18 of Ministry of Mines16 there has been around 8

to 12% increase in the production of minerals every year (for financial year 2018 it was

13%). The number of small operational mines in the country, excluding atomic, fuel and

minor minerals, was 1,531 in 2017-18. Around 200 each of these mines are in Tamil Nadu,

Madhya Pradesh and Gujarat. However, Rajasthan is in the leading position in terms of

estimated value of mineral production in the country. It had a 20.26 % share in the

national output, followed by Odisha with 17.77%.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 252

The following diagram broadly depicts India’s important mineral resources:

India’s geological features are known to be broadly similar to that of Western

Australia, particularly in relation to iron ore, bauxite, coal, diamond and heavy minerals.

India has identified 5.71 lakh sq. km as the obvious geological potential (OGP) area, but,

only 10% of it has been explored and 1.5% is being mined. India also has potential to mine

minor minerals. It is estimated that their share in the value of production is about 26%.17

India’s Strategic Minerals

The initial effort to define strategic materials/minerals/resources was made by

the US Army and Navy Munitions Board following World War I. Two classifications were

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 253

identified: strategic minerals and critical minerals. Strategic minerals were distinguished

by their essentiality to the national defence, their high degree of salience in wartime and

the need for strict conservation and control over distribution. While, Critical minerals

were considered less essential and more available domestically, requiring some degree of

conservation.18

In the Indian context, one of the early references to the issue of strategic minerals

is found in an article published in the Defence Science Journal in 1952.19 It was argued

that strategic minerals include, besides materials for combat munitions, all mineral raw

materials required for industry. The paper mentions that India does have ample and well

distributed domestic mineral resources. In respect of strategic minerals as well India is

mostly self-sufficient, it said. It identified the minerals which are vital for war and also

strategic minerals which are deficient in the Indian context. However, no rationale for

such identification was provided. Ten minerals, namely Sulphur, Lead, Petroleum, Zinc,

Mercury, Platinum, Nickel, Graphite, 'Tin and Ferro-tungsten were identified as strategic

minerals which are available in short supply in India.

Broadly, any military industrial complex is connected with the development of

transport, intelligence gathering and weapon platforms (aircrafts, ships, submarines,

tanks, UAVs, etc.). This industry also covers production of weapons and ammunition

(guns, bullets, bombs, missile etc), ground infrastructure and support equipment (radars,

sonars, staircases, batteries, tents, functional food, etc). Essentially, the nature of threat

dictates the possible type of warfare a state is likely to face. The warfighting doctrines of

the state identify the broad nature of equipment needed by the armed forces. India need

to remain prepared to fight asymmetric, conventional and nuclear conflicts. Hence,

almost every from of defence industry -- from ground systems to aerospace to missile

building to ship and submarine building industry --is important for India. Obviously,

minerals required for all these industrial sectors are critical and hence, could be

considered as strategic.

It is important to appreciate that defence industry constitutes only a portion of

the strategic industry. There is a very thin-line that differentiates (in some sectors)

between what is a military industry and what is a civilian industry. Space industry,

Electronics industry, Information Technology and Communications industry products, all

have utility in diverse sectors, including the defence sector. In addition, energy industry,

including the nuclear sector, is significantly dependent on various critical minerals.

Possibly, that is why India’s overall focus during the first five to six post-independence

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 254

decades was to establish the mineral sector as a whole without making any

differentiation between conventional and strategic industry.

At present, however, Indian policy makers are keen to identify the strategic

minerals exclusively. An effort in that direction is visible in a report published by the

Planning Commission in 2011. This report specifically identifies strategic minerals and

metals. They include Tin, Cobalt, Lithium, Germanium, Gallium, Indium, Niobium,

Beryllium, Tantalum, Tungsten, Bismuth and Selenium and Rare Earths.20 In the following

paragraphs21 some basic information is provided about these minerals.

Beryllium is a steel-grey, hard and light metal. It is lighter and almost six times

stronger than the steel. It is non-magnetic and has excellent thermal conductivity with

very high melting point. Its exceptional ability to form alloys with many important

materials has increased its importance for strategic equipment development and

production industry. It has been declared as a critical and strategic mineral by many

countries, including the US, EU and China. It has wide applications in electronics,

aerospace, transport systems and medical instrumentation.

Bismuth is a hard, brittle, lustrous, and coarsely crystalline material. In

ancient times, this metal was often confused with lead and tin, which share some of its

physical properties. It has the lowest thermal conductivity among all metals, and it is the

most diamagnetic of all metals. It is useful as an element type-metal alloy and also used

of for castings purposes due to its unique property to expand after solidification. It is

mostly used as an ingredient in pharmaceutical products and semiconductor devices. It is

used as a carrier for two uranium isotopes in nuclear reactors, in fire systems and mobile

refrigerators, and for cooling computer processors.

Cobalt is a brittle, hard, silver-grey transition metal found in association with

copper, nickel and arsenic ores. Its alloys possess useful properties such as high

temperature melting point (1493°C), ferromagnetic, multivalent, etc. It has the ability to

retain its strength and properties even at high temperatures. Super-alloys made of cobalt

have improved strength and wear and corrosion-resistant characteristics at elevated

temperatures. This metal has diverse industrial and military applications. It has a wide

range of applications in renewable energy and reusable energy storage systems,

manufacturing of turbines and compressors, in jet engines, radar systems for stealth

technology, and nuclear industries.

Gallium is a soft, silvery metallic element and was first used in high-

temperature thermometers. It melts at a low temperature (29.75°C) and has an unusually

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 255

high boiling point (~2,204°C). Presently, Gallium has wide applications from

manufacturing of semiconductors, data-centric networks to smartphones.

Germanium is a lustrous, hard, greyish-white metalloid. It is unaffected by acids

and alkalis, except nitric acid. The properties of germanium is most closely associated

with silicon. It easily forms compounds with arsenic, gallium and some other metals. It is

used in transistors and in integrated circuits. It also has utility in the production of

infrared spectroscopes and infrared detectors

Indium is a rare, soft, malleable and easily fusible heavy metal. It remains soft

at low temperatures and is most suitable for solders. Indium has very specific usage, but

the most important current use of Indium is in flat panel displays, Plasma Display Panels

(PDPs), Liquid Crystal Displays (LCDs), and Organic Light Emitting Diode (OLED) screens,

which account for upwards of 80 per cent of all demand. Also, because of its high

sensitivity to temperature, Indium is used in nuclear industry to make control rods for

batteries in atomic reactors. It is also used as a glass coating for aircraft windshields and

in the semiconductor industry for making germanium transistors, thermistors, rectifiers

and photocells.

Tantalum, is a hard, blue-grey, lustrous transition metal. It is corrosion resistant

and is closely related to niobium in terms of physical and chemical properties, often even

considered identical. It is used in the manufacturing of cutting tools and electronic circuits

in protection systems for steel structures such as bridges and water tanks.

Tin, one of the most commonly known and used minerals. It is easy to recycle,

has a low melting point, is malleable, is resistant to corrosion and fatigue and has the

ability to alloy with other metals. Tin is one of the oldest metals known to mankind and is

used in combination with copper to make bronze. Tin can be used in both in industry and

also in the form of chemical compounds. Its usage lies in electrical components such as

capacitor electrodes, fuse-wires and major usage in soldering wires, which make it a vital

mineral in the electronic industry.

Tungsten, also called “wolfram”, has the highest melting point (3,422±15°C) and

boiling point (5,700°C) of all metals. The coefficient of thermal expansion of tungsten is

lowest in all metals; hence, it is widely used in the filament of bulb and high-speed cutting

tools with carbide. Presence of carbon and oxygen gives tungsten considerable hardness

and brittleness. Tungsten gets used in making special and alloy steels and is widely used

in cutting and wear-resistant materials. Its utility for electrical and electronic systems/

equipment is well known. It is also used in armour plate and armour-piercing ordnance.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 256

Niobium, formerly known as columbium is a soft, grey, crystalline, ductile

transition metal. This mineral is used with iron and other elements in stainless steel alloys

and also in alloys with a variety of nonferrous metals, like zirconium. The various alloys

made by using this mineral are strong and are often used in pipeline construction. It has

also utility for aerospace industry and gets used in manufacturing of the jet engines and

heat resistant equipment.

Selenium, is a chemical element with properties that are intermediate

between the elements sulphur and tellurium, and also has similarities with arsenic. It

rarely occurs in its elemental state or as pure ore compounds in the Earth's crust. It is

found in metal sulphide ores and is produced as a by-product in the refining of these ores,

most often during production. The chief commercial uses of selenium today are in

glassmaking and pigments. Gets used in metal alloys like lead plates used in storage

batteries and in rectifiers to convert AC current into DC current. Selenium is used to

improve the abrasion resistance in vulcanized rubbers.

The Rare Earth Elements/Minerals (REEs/REMs) do get deliberated upon as a

distinct category away from strategic minerals owing to their explicit qualities and

relevance for defence industry. They are a set of 17 elements at the bottom of the

periodic table used in a variety of renewable energy and defence applications, including

precision guided munitions, wind turbines, unmanned aerial vehicles, hybrid vehicles and

tactical wheeled vehicles.22 REE exhibit a range of special (some unique) properties which

are used in many modern and “green” technologies. The International Union of Pure and

Applied Chemistry defines the Rare Earth Elements as the 15 lanthanides together with

yttrium and scandium.23 REEs typically fall into the categories like:24 Light Rare Earth

Elements (LREEs) and Heavy Rare Earth Elements (HREEs), with varying levels of uses

and demand. REE mineral deposits are usually rich in either LREEs or HREEs, but rarely

contain both in significant quantities.

Heavy Rare Earths are Europium (Eu), Gadolinium (Gd), Terbium (Tb),

Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium (Tm), Ytterbium (Yb),

Lutetium (Lu) and Yttrium (Y)

Light Rare Earths are Lanthanum (La), Cerium (Ce), Praseodymium (Pr),

Neodymium (Nd) and Samarium (Sm)

Apart from the 2011 study of the Planning Commission, another study

undertaken during 2016 for the Department of Science and Technology (DST) identifies

shortage of 13 critical raw materials needed to feed India’s growing economy over the

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 257

next 15 years. The report mentions that India’s plans to expand its aerospace industry

could be threatened by a domestic shortage of vital raw materials. It highlights India’s

heavy dependence on China. The report argues that the materials in short supply are

vital, if India wants to make a transition to a high-tech manufacturing economy. These

critical raw materials include rhenium, germanium and rare earths, limestone and also

graphite. Also, since all major green technologies depend heavily on rare earths India

needs to device a policy for rare earths production.

Luckily, India has some deposits of mainly lighter

rare earth elements, but it needs to import heavier

rare earths. India is also completely dependent on

other countries for rhenium, used to produce super-

alloys for the aerospace industries, and also

germanium, used in electronics. If India wants to elevate its manufacturing capabilities by

2030 in the areas such as aerospace, electronics, defence and nuclear energy, then it must

clearly manage its raw material imports and domestic production.25

Policy Structures: Mining/Mineral Sector in India

Indian Bureau of Mines regularly publishes the Indian Minerals Yearbook

providing all requisite details about the global scenario, India’s production cycle, exports,

imports and details about the substitutes. At a policy level certain important guiding

documents are available which get routinely updated. The Mines and Minerals

(Regulation and Development) Act, 1957 was enacted to provide for the regulation of

mines and development of minerals. This act has been amended more or less once every

decade (as per the requirements to bring in changes in the policy on mineral

development) Two of the key regulations in the sector are:

1. Mines and Minerals (Development and Regulation) Amendment Act, 2015

The MMDR Amendment Act, 2015 specifies that the mineral concessions for major

minerals will be granted through auction or competitive bidding. It also states that the

mines will be granted for a fixed tenure and will be made easily transferable; strict penalty

provisions will be introduced to stop illegal mining; and a National Mineral Exploration

Trust (NMET) will be established to conduct detailed exploration on a regional basis.

2. Atomic Minerals Concession Rules, 2016

The Ministry of Mines, Power, Coal, and New & Renewable Energy have decided that the

State Governments will now grant mineral concessions, where atomic mines are less than

the prescribed threshold values, to the private sector by auction or competitive bidding.

India’s plans to expand its

aerospace industry could be

threatened by a domestic

shortage of vital raw

materials.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 258

The first National Mineral Policy was enunciated by the Government in 1993 for

liberalisation of the mining sector. The National Mineral Policy, 1993 aimed at

encouraging the flow of private investment and introduction of state-of-the-art

technology in exploration and mining. This policy was replaced with a new National

Mineral Policy during 2008. In 2018 a new draft policy has been circulated to cater for the

present day requirements. Currently, in the mining sector, there are various government

supported autonomous agenciesii and private industries making significant contributions.

The 2018 draft policy document mentions that the mineral exploration would be

incentivised to attract private investments. However, the policy still lacks clarity on the

actual fiscal incentives for potential investors. Since, mineral exploration is a risky

business, no big investor is likely to make investments without clear assurances in regards

to finances and technological assistance. Also, the policy has no provisions for transfers

of mineral concessions as is the normal practice in other mineral rich nations.26 The

mining sector also suffers from several shortcomings in the licensing regime such as the

separation of auction for prospecting licenses from provision of mining licenses that need

to be overcome.27

A new report called the ‘Critical Non-Fuel Mineral Resources for India’s

Manufacturing Sector: A Vision for 2030’28 offers a first-of-its-kind framework for India to

identify the 12 critical minerals (including beryllium, germanium, rare earths (heavy and

light), rhenium, tantalum, etc.) that can play an important role in the Make in India

programme, and assesses the impact of these critical minerals on the manufacturing

sector. It also weighs the economic importance of these minerals and associated supply

risks.

Challenges for India’s Mining/Mineral Sector

Broadly, the strategic mineral sector is expected to face similar difficulties as that

of the entire mining sector. Import dependency is one of the most obvious challenges.

Normally, such dependence materialises either because the minerals are physically not

available within the physical geography of the country or the excavation of the minerals is

not possible/feasible. It is important to note that on occasions, in spite of having minerals

available in the backyard, the import of mineral becomes more cost-effective than

creating an industry-structure for its extraction within the country. Also, India faces

various challenges such as the high cost of acquiring land and on occasion local resistance

for land acquisition. In addition, there are major challenges such as Naxalism. There

apparently is an interrelationship between the Naxalite conflict and India’s mineral

ii. Some such agencies include National Aluminium Company Limited (NALCO), Bhubaneswar; Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), Nagpur; National Institute of Rock Mechanics (NIRM), Kolar; Non-Ferrous Technology Development Centre, Hyderabad

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 259

production and mining policies. Following table gives a broad idea about locations

where some strategic minerals are available, but excavation is a difficulty:

Type of strategic material Region

Beryllium Jharkhand, Odisha

Tin West Bengal

Tungsten Chhattisgarh, Jharkhand

Cobalt Odisha

Gallium Odisha

At present, India’s import dependency is mainly on states such as China, Brazil,

Democratic Republic of Congo (DRC), Russia, Australia and the US. Geopolitical factors

could impact such bilateral arrangements from time to time. India has considerable

dependence on DRC for mineral imports. Unfortunately, DRC is one country with

maximum political turbulence. Hence, the internal

situation in that country could have an impact on

India’s import needs.

Internally too there are new challenges.

India has a very high percentage of open pit

mining. Opencast or open pit mining is a method

in which extraction of a mineral is done near the surface of the earth, creating large open

pits. Being cost-effective, this is a very popular method. This activity presents enormous

social and environmental challenges that need to be addressed.

India was one of the early investors in the arena of REE and the Indian Rare Earths

Ltd. was established in the 1950s. This organisation has four production plants and is

profit-making. However, due to limited natural availability of the deposits of the REEs,

India has not achieved much in this field. More importantly, it was also realised that

importing these minerals from China is much cheaper than to undertake domestic

production. However, having realised the importance of the REEs for its strategic

industry, India has now started looking at this issue differently. At the same time there is

a need to realise that enhancing strategic minerals production would need private

industry’s support. The country has deposits of rare earths minerals like ilmenite,

sillimanite, garnet, zircon, monazite and rutile, collectively called Beach Sand Minerals

(BSM). India has almost 35 per cent of the world’s total beach sand mineral deposits.

Their importance lies in their unique electronic, optical and magnetic characteristics,

which cannot be matched by any other metal or synthetic substitute.29

India’s import dependency is

mainly on states such as

China, Brazil, Democratic

Republic of Congo (DRC),

Russia, Australia and the US.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 260

The non-availability of minerals owing to unequal distribution or because of other

reasons requires alternative mechanisms to overcome the deficit. There are two

important options on the table with universal acceptance. One, is the recycling of

minerals, and the other is the finding of substitutes (alternative minerals). Effective

mechanisms are already in place for the recycling of basic metals (such as iron, nickel,

chromium, copper and aluminium).30 However, this is not yet the case with precious

metals and rare earth metals. Identifying substitutes for some of the strategic minerals is

essential, but this not a very easy process.

Conclusion

It is difficult to have a universal definition of strategic minerals. India would be

required to have its own conceptualisation of its strategic minerals. Strategic industry is

growing in India and the need for strategic minerals is expected to increase. India has

already identified a few minerals, which it feels are strategic in nature. However, there is

a need to undertake a systemic risk analysis for appreciating the present and future

needs. This process needs to remain dynamic since the ‘topology’ of strategic minerals

could shift.

There is also a need to develop a practice of risk assessment and devising

management strategies for key strategic materials for the present and future. The entire

domain of undertaking assessments, factoring strategic needs, managing domestic

production and deciding on export/import policies would be a complex and

multidisciplinary task. Hence, it is important to evolve a separate structure within the

government apparatus (along with the members from industry) for undertaking this task.

India is a mineral-rich country and generally, availability is not an issue. However,

the real challenge is that of excavation and processing. For this purpose, some major

investments need to be made. Since returns on such investments would take time to

materialise there is a need for the government to device a specific industry policy for this

sector. Unfortunately, policies like the one for Beach Sand Minerals (BSM), which was

announced in August 2018, lack industry focus.

China is the global leader in the REE sector (has around 95% of the global

deposits) and is likely to remain so for quite some time. There is an increasing realisation

globally about the Chinese monopoly in this sector. Most of the REEs are strategic

minerals. India therefore needs to focus more on the development of this sector. Studies

should be undertaken to explore the nature of the existing supply-chain mechanism with

major emphasis on weapon-specific supply-chain mechanisms. This could help to

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 261

correctly identify India’s country specific dependence. Efforts should be made to reduce

large dependence on any specific country.

The role of the private sector in mining and the minerals sector will increase in the

years to come. There is a need to increase the research focus in all relevant areas of

technology and to undertake research on recycling of minerals and finding the correct

substitutes (device material substitution strategies).Effort should be made to reduce the

import dependency of technologies too. Unfortunately, geological and material sciences

are not popular areas of research in India. Industry would require not only modern

technology but also trained manpower. As a way forward, it is important to evolve an eco

-system involving government agencies, public sector undertakings, private industry and

educational organisations.

References

1. Krivovichev, Sergey V. Minerals as Advanced Materials II. Berlin: Springer, 2012.

2. "What Is a Mineral?" Mineral Definitions. Accessed January 16, 2019. http://

webmineral.com/Mineral_Definition.shtml#.XFFOznduJjo.

3. "What Is a Mineral?" Mineral Definitions. Accessed January 16, 2019. http://

webmineral.com/Mineral_Definition.shtml#.XFFOznduJjo. and "Mineral Classification,

An Organizational Necessity." Rocks And Minerals 4 U. Accessed January 16, 2019.

https://www.rocksandminerals4u.com/mineral_classification.html.

4. "Critical Mining Companies." Accessed January 19, 2019. http://

www.miningfeeds.com/2011/08/02/critical-mineral-companies,.

5. Weston, Rae. Strategic Materials: A World Survey. New Jersey: , Rowman & Allanheld,

1984. p.1

6. Lele, Ajey, and Parveen Bhardwaj. Strategic Materials: A Resource Challenge for India. New

Delhi: Published by Pentagon Press in Association with Institute for Defence Studies and

Analyses, 2014.. In this article, the author has used this earlier work sparingly.

7. Holland, T. H. Sketch of the Mineral Resources of India. London: Keegan Paul, Trench,

Trubner &, 1908., Published by the Government of India, London and Calcutta

8. "IBM- Indian Bureau of Mines." Indian Bureau of Mines,Nagpur. Accessed February 01,

2019. https://ibm.gov.in/index.php.

9. "Background to Major and Minor Minerals." Accessed February 01, 2019. http://

www.samataindia.org.in/mici/attachments/article/28/Brief on PESA Minerals.pdf. and

"MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957." Accessed

February 01, 2019. https://mines.gov.in/writereaddata/UploadFile/MMDR Act,1957.pdf.

10. Ray, S.c. "Indian Mineral Resources — a Short Review." Resources Policy 4, no. 4 (1978):

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 262

289-94. doi:10.1016/0301-4207(78)90007-7.

11. "World Mining Congress: International Organizing Committee - Official Site." World

Mining Congress | International Organizing Committee - Official Site. Accessed December

12, 2018. http://www.wmc.org.pl/.

12. "Development of Indian Mining Industry - Full Version." FICCI and Metals Division.

Accessed October 2013. http://ficci.in/spdocument/20317/Mining-Industry.pdf. and A

Brief Report on Mineral and Mining Industry in India, May 2025, report by ASA &

Associates LLP

13. "INDIA’S MINING INDUSTRY ANALYSIS 2017-18." LSI Financial Services Pvt. Ltd. http://

www.lsifinance.com/pdf/lsi-research/mining.pdf.p.8

14. US Geological Survey Report 2011-12

15. A Brief Report on Mineral and Mining Industry in India, May 2025, report by ASA &

Associates LLP

16. "Annual Report 2017-18." Ministry of Mines. https://mines.gov.in/writereaddata/

UploadFile/Mines_AR_2017-18_English.pdf. and The Economic Times, Jun 24, 2018

17. "Strategy for India@75." NITI Aayog. November 2018. https://niti.gov.in/writereaddata/

files/Strategy_for_New_India.pdf. p.54

18. Kessel, Kenneth Allen. Strategic Minerals U.S. Alternatives. Washington (D.C.): National

Defense University Press, 1991. pp. 13–14

19. Wadia, D. N. "Strategic Minerals of India." Defence Science Journal 02, no. 04 (October

1952):, pp.198-199.

20. "REPORT OF WORKING GROUP ON MINERAL EXPLORATION AND DEVELOPMENT

(OTHER THAN COAL & LIGNITE) FOR THE XII FIVE YEAR PLAN (2012-17)." Government

of India. https://mines.gov.in/writereaddata/UploadFile/Report_of_working_group.pdf.

sponsored by the Planning Commission, 2011, p.86

21. Ibid 6 pp 15-52

22. “Rare Earth Elements 101", IAM Gold Corporation, at http://www.iamgold.com/files/

REE101_April_2012.pdf , Accessed on 12 March 2017 at http://www.iamgold.com/files/

REE101_April_2012.pdf

23. Heavy Rare Earth Elements (HREE) opportunities in Queensland, Geological Survey of

Queensland, Sep 2014, Accessed on 23 June 2018 https://www.dnrm.qld.gov.au/__data/

assets/pdf_file/0018/238104/hree.pdf

24. "Rare Earth Elements." British Geological Survey, National Environment Research

Council. November 2011. Accessed February 08, 2019. https://www.bgs.ac.uk/downloads/

start.cfm?id=1638.

National Security Vol.II Issue II | ISSN 2581-9658 (O) | 263

25. Subramanian, K V Venkata. "Lack of Critical Elements Could Stymie India's Growth."

Chemistry World. September 01, 2016. Accessed February 03, 2019. https://

www.chemistryworld.com/news/lack-of-critical-elements-could-stymie-indias-

growth/1017363.article.

26. "Indian Draft National Mineral Policy Dashes Hopes of Investments." SteelGuru India.

February 07, 2018. Accessed February 02, 2019. https://steelguru.com/mining/indian-

draft-national-mineral-policy-dashes-hopes-of-investments/501734.

27. "Strategy for India@75." NITI Aayog. November 2018. https://niti.gov.in/writereaddata/

files/Strategy_for_New_India.pdf., p. 54

28. Gupta, Vaibhav, Tirtha Biswas, and Karthik Ganeshan. "Critical Non-Fuel Mineral

Resources for India’s Manufacturing Sector." Department of Science and Technology,

Government of India. July 2016. Accessed February 13, 2019. http://www.dst.gov.in/sites/

default/files/CEEW_0.pdf.

29. Akshay, KVL. "'India Not Realising Potential of Rare Earth Industry'." The Economic

Times. October 19, 2016. Accessed February 12, 2019. https://

economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/india-not-

realising-potential-of-rare-earth-industry/articleshow/54940321.cms.

30. "MINERAL RESOURCES AND MATERIAL SUBSTITUTION." Academy of Finland. July 04,

2014. Accessed February 12, 2019. https://www.aka.fi/globalassets/32akatemiaohjelmat/

misu/aineisto/mineraalivarat_ohjelmamuistio_en.pdf.